⁍ Japan’s services sector contracted for a sixth straight month in July.

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⁍ The survey highlights the continued struggle facing the world’s third-largest economy.

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⁍ Pandemic cripples activity and hurts customer demand.

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⁍ Firms’ business expectations turned positive for the first time in five months.

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– Japan’s economy shrank for a sixth straight month in July, with the country’s services sector contracting for the longest stretch since September 2011, according to a Purchasing Managers’ Index survey released Thursday. The index, which shows the health of the country’s economy, rose to 45.4 from June’s 45.0 and a preliminary 45.2, but was still below the critical 50.0 mark that separates expansion from contraction, Reuters reports. “While there were some positive signs in terms of domestic sales, large parts of the service sector remained impacted by fragile customer demand and the cancellation of projects due to the pandemic,” says Tim Moore, director at IHS Markit, which compiles the survey. “As a result, service providers commented on the need to reduce fixed overheads and an aversion to replacing departing staff.” Japan is in its first recession in four and a half years, the Wall Street Journal reports.